GENERAL COMMENTS:
The livestock contracts are rolling full steam ahead into Friday's afternoon as the market absorbs the support that the cash market has seen over the week, and the support that traders have aided to the complex too. Bullish tones have helped the market recover late in the week after Monday's tough sell out. July corn is up 6 1/2 cents per bushel and July soybean meal is up $9.00. The Dow Jones Industrial Average is down 24.46 points.
LIVE CATTLE:
As the live cattle market looks to the day's end, it's been another tremendous week for the complex. The futures market rebounded from Monday's sharp sell-off and saw exceptional trader support, all while cash prices jumped another $2.00 to $4.00 higher. June has historically been a month when prices wane, but slaughter speeds run aggressively, and it's appearing as though slaughter speeds will keep to their historical pattern, but prices intend to break the market's norm. June live cattle are up $0.37 at $138.12, August live cattle are up $0.92 at $137.22 and October live cattle are up $0.77 at $142.85. The country hasn't seen any more business develop and it's looking like the week's cash cattle trade is done with. Throughout the week, live cattle have traded for $136 to $140, which is $4.00 higher than a week ago, and Northern dressed cattle have traded for $223 to $236, but mostly at $230, which is roughly $4.00 higher than a week ago.
Boxed beef prices are mixed: choice down $1.11 ($266.05) and select up $1.89 ($247.27) with a movement of 78 loads (58.66 loads of choice, 11.91 loads of select, zero loads of trim and 7.54 loads of ground beef).
FEEDER CATTLE:
The corn market is pushing a modest $0.03 to $0.05 rally, but that has not redirected the feeder cattle market as the contracts charge higher into Friday's afternoon. Not only has the market seen exceptional support from the live cattle market both technically and in the cash market, but feeder cattle demand over the past two weeks has grown stronger. After parts of the countryside got moisture, buyers became more optimistic about buying as they can now kick their purchases straight out onto grass and the deferred live cattle contracts are showing more promise. August feeders are up $1.92 at $173.22, September feeders are up $1.50 at $174.72 and October feeders are up $1.07 at $176.05.
LEAN HOGS:
Given the money that packers have thrown at cash hogs this past week, the pump in export sales and the increased interest in pork cutouts late this week, the lean hog market is rolling strong into Friday's afternoon. July lean hogs are up $1.30 at $110.87, August lean hogs are up $1.92 at $107.95 and October lean hogs are up $0.85 at $93.92. On June 29, the market will get the newest release of the Quarterly Hogs and Pigs report, which should help the market better understand the trajectory for the second half of the year. In the meantime, pre-Fourth of July buying has seemed to help the market trek higher, and so long as consumer interest doesn't fall out of bed, the market may be able to hold these levels.
The projected lean hog index for June 16 is down $0.21 at $108.54, and the actual index for June 15 is up $0.18 at $108.75. Hog prices are lower on the Daily Direct Morning Hog Report, down $1.51 with a weighted average of $115.34, ranging from $108.00 to $123.50 on 4,429 head and a five-day rolling average of $116.32. Pork cutouts total 148.62 loads with 132.21 loads of pork cuts and 16.41 loads of trim. Pork cutout values: up $1.87, $113.23.
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